Credit card debt is a major cause of over one million bankruptcies each year.  The reason is that many people get a credit card without researching and reading the fine print.  By the time annual fees are added on, along with spending indiscriminately, payments are missed, which causes their balance to skyrocket.   
Although we all like to place the blame on the credit cards and the credit card companies, you need to keep in mind that the real cause of your financial mess is you.  
One shopping spree does not usually cause high debt.  It is usually a pattern that consists of gradually increasing purchases that add up to a large debt.  The great thing is that it can be very easy to get out of debt.  The key is to start spending less than you make.  This is a long-term solution that can help you to whittle your debt down.  
Although it may sound simple, it can be very difficult if you have a problem with willpower.  It is important to stick with spending less than you make or you will find yourself in exactly the same place as you were before.  Overcoming your debt will take willpower and a great deal of time.  
It may be difficult to stick with your debt repayment program, but keep yourself strong and you will find yourself out of debt before you know it.  
It is important to learn how to get out of debt and then stay out of debt.  If you can summon enough willpower and strength towards your finances and spending, then you will find yourself the winner in the game of debt.  It may be easy to get into debt, but getting out of debt is much more difficult, but worth it.   
One simple phrase can sum up the solution to your financial problems.  If you don’t have the money to spend, then don’t spend it!

The Skinny on Debt Consolidation

Anyone who has been around a while will tell you that it is much easier to get into debt than it is to get out of it. If you are struggling to make ends meet each month, and are tired of not having enough money to put food on the table, then you should know that there are other options out there besides default or bankruptcy. One of the more common options is debt consolidation.

It is best to pursue the option of debt consolidation before your payments have gone past due, so that your credit rating is still high. In general, debt consolidation is used for unsecured debt, such as credit cards, but can be used for almost any debt you have, providing you can get that amount of money. Lenders will be more willing to work with you and give you a good deal if you are taking the responsibility to admit you are in trouble before it gets bad, so keep that in mind.

Most debt consolidation loans are used to get rid of high-interest credit card debt. People are starting to realize just how much those credit cards are costing them each month, and sooner or later come to the realization that if they don’t do something, they will never get out of debt. The majority of consolidation loans come with much lower interest rates than the average credit card, which in the long-term scheme of things, can save you the most money. Likewise, your interest rate also affects your monthly payment amounts, so this can also save you money every month, so that you have more to put into the household, after your bills are paid.

If you have home equity, you may be able to get a much better deal on the funds you need with a home equity loan. The only downside to this is that you will be signing away your home, and if you default on your payments, could lose it to the lender. The good thing is that you can payoff those debts that have been hanging over your head forever or those credit card bills with rising balances, once and for all. Just be smart and don’t jump right back into debt with a new card once those are paid off, as you will only start back down the right to financial problems, and your loan will have been for nothing. You will need to learn how to live within your means, and save money for those unexpected expenses that are bound to arise, so you don’t feel as though you have to turn to credit cards or other loans for help. If you don’t do this, you will likely make the same mistakes over and over again.

You can even apply for your debt consolidation loan online, if you choose to do so. There are many websites where you can enter your information in, and then receive several quotes in your email within 24 hours. Make sure you carefully compare all of the quotes that you receive, and that you choose a reputable lender. Remember, you are doing this to save money, so if your interest rate ends up being higher than what you already pay, or your payments are more than your current payments, then there is really no need in taking the loan, since it won’t actually help you any in the long-run, and may even make things worse!

The Pros and Cons of Debt Consolidation

It is really easy to amass a lot of debt without even thinking about it, and you may not even realize it until those payments start getting tougher and tougher to make on time and you start noticing rising interest rates, and even rising balances thanks to fees that you are being assessed. It can get to the point that you can’t even come up with the money for your minimum payments any longer, because the further behind you fall, the more you will be required to pay each month to stay afloat. In this situation, you may be quick to think that debt consolidation could be the answer that you are looking for, after all, you will likely end up with less money being spent each month towards payments, and may even end up with lower interest rates, but you have to really put some thought into this, as it isn’t always the easy answer that it seems to be!